Wells Fargo Updates Outlook on Uber
Wells Fargo is updating its outlook on Uber (UBER), reportedly forecasting an explosive share price for the $173 billion ride-hailing company.
In a new note to clients, Wells Fargo’s Ken Gawrelski and other analysts raise Uber’s price target to $100 from $90 and reiterate an overweight rating, reports Barron’s.
The analysts also say Uber’s share price may rise to as high as $126, a more than 52% increase from the stock’s $82.81 close on Friday, as competition is likely to drive company efficiencies.
“We believe the stock is likely to outperform as healthy fundamental trends drive upward estimate revisions.”
The update comes after Uber’s reported earnings for the first quarter topped analysts’ estimates with earnings per share of $0.83, soaring above the $0.51 consensus forecast. The company also printed $11.5 billion in revenue in Q1, a 14% growth on a year-over-year basis.
However, the company fell short of the anticipated revenue of $11.6 billion in the first quarter of the year.
One highlight reported was that users booked more than three billion “trips,” up 18% from the first quarter of 2024.
The Wells Fargo team notes that top-line trends remain strong for both Uber’s mobility and delivery segments. They also say that Uber’s deployment of autonomous vehicles in the near term should attract more investor interest.
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